Builders gear up for six-star energy efficiency ratings

The cost of housing is on the rise and it will climb even higher from mid next year when all new homes will have to have a six-star energy efficiency rating.

The change will bring WA into line with other states but what will it add to the price of building?

The move has triggered a debate within the industry; sustainability or affordability and what will people be prepared to pay upfront to decrease their energy bills down the track?

One Perth builder has embraced the changes, releasing a range of six-star rated house designs onto the market a year before it becomes compulsory.

Summit Homes Tim Underwood said the move to energy efficient homes was inevitable.

"It was a case of we were going to have to get our homes assessed and rated and start implementing the changes to ensure we were six-star rated," he said.

"We thought we might as well get ahead of the game so when it comes to the first of May next year when it became compulsory, we didn't have to make any adjustments or scramble at that point."

Mr Underwood says there has been a good response to the new designs.

"I would say it's actually increased our sales by people recognising that it's going to save them money on their heating and cooling costs, particularly with the rate rises that we're seeing on energy supply at the moment, so it has actually paid off for us," he said.

He says one of their display homes has a nine-star rating while a six-star rated home could give the owner up to 78 per cent energy savings.

"Primarily the designs were all fairly good in regards of their window sizing and cross ventilation but what we've had to do is to increase our insulation," he said.

He says the homes now have R4 insulation as well as cavity wall insulation in the brickwork.

Cost control

It's not necessarily good news for those struggling to afford a new home.

Dale Alcock's general manager Dean O'Rourke says the six-star ratings will have a cost impact on homes.

"We can understand the government's agenda, the main concern for us would be that affordability is getting traded off against sustainability," he said.

Mr O'Rourke says each home is put through a computer modelling system which compares the design with its orientation and climate zone.

"If it doesn't come up as a six-star rating, we would need to tweak the home, or add products accordingly to get the home to meet the requirement," he said.

"Depending on the orientation of the block and the design of the home, it could add anything from a few hundred dollars administration fee to get the computer modelling done, right through to tens of thousands of dollars depending on the orientation and the area that you're building in.

"Affordability is a major issue at the moment, the dream of homeowning is becoming very much a dream now."

Mr O'Rourke says most clients ask for nice finishes such as downlights, stone benchtops and high ceilings, rather than a six-star energy rating.

Mr Underwood says his company has absorbed the cost increases to introduce the intitiative.

"It's actually drawing people into our displays, they're actually coming in to ask about the six-star; what it entails, what are the additional costs, what are you doing to achieve the six-star and how will it assist me," he said.

Alternatives

The Housing Industry Association's David Endersby says the HIA is a long time supporter of sustainable development.

"It is a positive move but it must be balanced at all times with affordability and accessibility for housing," he said.

He says the system needs to be refined before it's introduced.

"For example there are three different software solutions that you can rate your house on and there are three different sets of results you get and therefore three different sets of prices the consumer can be given to achieve the same outcome," he said.

"There are builders and consumers out there who will want their houses computer-rated, there are people who will want to have correct orientation and solar design for their homes but for those people where affordability and accessibility of housing is actually more important than sustainability, we would ask that the government provide an avenue for those people as well."

Dean O'Rourke from Dale Alcock says land developers will have to assist builders by making sure blocks are orientated in the right direction but he warns this may also induce a price hike.

And, he has another point.

"You can put a one-star user in a six-star home and you're probably not going to achieve a lot anyway," he said.

"It depends on how a person uses their home, how they use their air conditioner and those sorts of things."

Existing Homes

But, why target new homes?

"I think there is a fair bit more the government could be doing to make people more energy efficient in their own homes now," Mr O'Rourke said.

"The new home market is just a drop in the ocean compared to the existing market; if they really wanted to make an impact then the existing home market should also be looked at in regards to how they can improve the energy ratings."

The HIA's David Endersby agrees.

"The ideology of trying to save energy in the new home sector is very admirable and as an industry we support that but we also believe that established housing, which represents 98 per cent of homes in Western Australia, also need to get on board," he said.

"It shouldn't just be for new housing.

"We would be calling on the government to consider what will you be doing for the existing housing, what are we going to do to assist those consumers improve the standards of their homes and the sustainability of their homes, to improve it as a whole community."

You have no doubt been hearing a lot about the Paris Agreement and know that it pertains to climate change, but are too embarrassed at this stage to ask for an overall explanation of what it's all about.